Online Savings Account Rate Changes

Not long after the Federal Reserve’s recent interest rate cut, ING Direct dropped their interest rate from 3.00% to 2.75%* APY. This is par for the course for ING Direct, as they’re always among the first to drop rates and the last to increase them. Not long thereafter, HSBC Direct dropped their rate from 3.25% to 3.00% APY*. And now, FNBO Direct has dropped their rate from 3.50% to 3.25%* APY.

While I’m a bit disappointed, I can’t say that I’m very surprised. Actually, the most surprising thing to me right now is that banks such as WT Direct (3.31%* APY) and E*Trade (3.30%* APY) haven’t followed suit (yet). It’s likely only a matter of time.

As for us, we’re sticking with FNBO Direct which is, in my opinion, one of the very best online savings accounts out there (read my review). Not only have they consistently offered high rates, but they’re also amongst the safest online banks.

*For updated rates, check out my list of online savings account interest rates.

13 Responses to “Online Savings Account Rate Changes”

  1. Anonymous

    I work on the PR team representing and we have been seeing high-yield savings account rates around 4% recently. So far it doesn’t seem that rate changes are affecting the 100 or so banks in our network.

  2. Anonymous

    How about adding Principal Bank and Discover Bank rates to your discussion? It would be nice to have on-line bank rates in one place. Bankrate often leaves many on-line bank rates out of their list.

  3. Anonymous

    I use FNBO, Dollarsavingsdirect and Banco Popular (Money Market). The last two are at 4.00% with the MM account guaranteed through 12/31/08. Closed my Emigrantdirect account to open the Dollarsavingsdirect. So far, customer service at both has been exceptional.

  4. Anonymous

    3.25 is still really good! I am not complaining!
    My hubs got in a car accident and the lady who was at fault had AIG, so far, they have not paid up for the car! Any tips/ ideas? We call them about twice a week to remind them.
    ~The Bargain Shopper Lady

  5. Anonymous

    Yep, those high yield savings accounts aren’t doing very much these days. I think they’re going to get worse before they get better too. It’s trickier than playing the stock market lately.

  6. Anonymous

    Of course I’m sad that FNBO dropped their rate but I’m not surprised, I expect it to drop again soon with all the talk of another fed rate cut. Sucks for savers. I’ll stick with FNBO, I’ve been happy with them and I like the liquidity of a savings account. I may put some money in a CD but never all of it.

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